Make sure investors get money within 100 days: Congress leader H K Patil

BENGALURU: Firing yet another salvo against the coalition government, Congress leader and former minister HK Patil on Sunday said chief minister HD Kumaraswamy should ensure that people who lost their money in the I Monetary Advisory (IMA) scam get it back within 100 days.
He said the coalition government has taken steps to unearth the truth by forming a Special Investigation Team. “That’s not enough. It should provide justice to investors. Victims of many such past cases are waiting even now,” he said in an open letter to Kumaraswamy.
He said the chief minister should personally monitor the case by appointing an ombudsman and set up a special court to try scams, like the IMA one, to ensure legal procedures are completed at the earliest.
Patil said the government should try these cases under the new ordinance (Banning of Unregulated Deposit Schemes Ordinance, 2019) promulgated by the Centre in February to curb Ponzi schemes and protect small investors. It’s valid till August and may become an Act in the upcoming Parliament session.
It allows a special court to complete legal procedures of attachment, realisation and distribution of proceeds to depositors within 180 days from the date of filing an application by a competent authority. It also targets black money or unaccounted-for funds which get converted into legitimate assets.
He added that it would prevent gullible investors from getting fleeced and also plug many gaps in current laws. It not only helps depositors but also the government in limiting conversion of black money into white.
The government should take steps to create awareness among the poor who, lured by high interest rates, fall prey to such schemes, he said.